Annual inflation in Russia accelerated to 2.34%

Inflation in Russia in the week from May 11 to May 15 slightly accelerated and amounted to 2.34% in annual terms after 2.32% a week earlier. This is stated in the review of the Ministry of Economic Development.

Weekly price growth amounted to 0.04%. From the beginning of May to data Rosstat, prices rose by 0.9%, and since the beginning of the year – by 2.15%.

Food prices fell on average by 0.05% due to the continued reduction in the price of fruits and vegetables by 0.9% (-8.7% in annual terms) and practically unchanged prices for other food products. Cucumbers fell in price by 9.2%, and tomatoes – by 4.2%, while cabbage rose in price by almost 14.9%. In annual terms, food products fell by 0.4%.

In the group of non-food products, prices increased by 0.04% against the backdrop of higher prices for shoes, clothing and building materials, as well as cheaper electrical appliances and detergents. In the service segment, prices accelerated growth to 0.19% after 0.1% a week earlier. Tourist services increased in price by 1.64% against the backdrop of an increase in the cost of domestic flights by 3.42% and hotels.

As Rosstat reported earlier, inflation in April was 0.38%, and annual inflation slowed to 2.3%. From May 3 to May 10, 2023, inflation stopped – the consumer price index was 100%, while at the beginning of May it was 100.05%.

In March, inflation in Russia amounted to 3.5%. The decline in Russia’s GDP in March slowed to 1.1% in annual terms from 2.9% in February, the Ministry of Economic Development reported earlier. According to the results of the first quarter of 2023, the country’s GDP decreased by 2.2%.

At the end of April, the Bank of Russia improved forecast for inflation and the rate of recovery of the Russian economy in 2023. The regulator now expects GDP growth of 0.5-2%, although back in February it predicted a decline. According to the Central Bank, inflation in 2023 will be 4.5-6.5%, in February it was expected at the level of 5-7%. According to the regulator’s forecast, in the second quarter inflation is expected to reach 3.6%, and by the end of the year it may reach 4.5-6.5%. In 2024, inflation will reach a plateau.

Following the meeting on April 28, the Board of Directors of the Central Bank left the key rate at 7.5% per annum for the fifth time in a row. The regulator’s target for inflation is 4%.